The big corporate news of the day is that Burger King is in talks to acquire Canadian coffee and doughnut chain Tim Hortons.
Besides the possible linking up of two iconic brands, each strongly associated with its home country, the deal is significant because it would be a tax inversion for Burger King. If the deal is consummated, Burger King would become a Canadian company and pay a lower tax rate.
Tax inversions have been a big theme of 2014, as several companies (largely in the pharmaceutical space) have acquired foreign rivals to move their tax base elsewhere.
Tax inversions have been soaring in 2014, prompting talk of new legislation.
These deals have infuriated some in Washington, and the loss of an iconic brand only adds fuel to the fire. There has been talk of legislation to limit tax inversions, but in this political climate, the idea of anything…
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